EU tube output expected to return to growth in 2019 and 2020

Tuesday, 05 February 2019 17:26:19 (GMT+3)   |   Istanbul

In the third quarter of 2018, output in the steel tube industry in the European Union remained on a downward trend as demand from large pipeline projects - which had supported production activity in the sector in 2017 - has been waning, according to the Economic and Steel Market Outlook 2019-2020/Q1 2019 Report from the Economic Committee of the European Steel Association (EUROFER).

The continued decline in production activity in the EU steel tube sector in third quarter of 2018 does not come as a surprise and follows the production pattern observed over the first half of the year. The main reason is the depletion of order books for large welded tubes at the main production sites in the EU which are predominantly located in Germany.

According to EUROFER, EU steel tube output is estimated to have fallen by 1.1 percent year on year in the fourth quarter of 2018, resulting in a 1.4 percent drop in total production activity in 2018. Total steel tube output in the EU is expected to increase by 0.5 percent in 2019 and by 1.4 percent in 2020.

Meanwhile, import pressure on steel tube markets in the EU will remain high. It is reported that the surplus in supply of large diameter pipes from Russia could rise to almost 3.9 million mt. Total Russian steel tube production is projected to rise by three percent in 2019, whereas domestic demand is expected to grow by one percent.

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